The Continental Congress Faced Several Constraints in Its Effort to Finance

question 22

Multiple Choice

The Continental Congress faced several constraints in its effort to finance the Revolutionary War.  The largest source of funds for the War was

• A) excise taxes.
• B) domestic bond sales.
• C) borrowing from foreign powers, such as France.
• D) printing money.

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Definitions:

Accrual

Accrual is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Liability

A liability is a company's financial debt or obligation that arises during the course of business operations, listed on the right-hand side of the balance sheet.

Asset

Resources with economic value owned by an individual, corporation, or country, expected to provide future benefits.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to income tax.